Police sources said the bomb exploded at a mobile market where a large number of people were present. The blast spread fear and panic among the residents and the shopkeepers who closed down their shops and business after the incident.

The explosion resulted in death of a man. It also inflicted injuries to 16 other people, most of them civilians. Edhi ambulances and rescue 1122 squad rushed to the site and shifted the injured to Lady Reading Hospital Peshawar, where two of them were reportedly in critical condition.

Heavy contingent of police reached the spot and cordoned off the area. Talking to reporters Superintend of Police (SP) Khalid Hamdani said it was a remote-controlled blast which targeted a mobile shop.

According to IG Bomb Disposal Squad, Shafqat Malik, around two kilogram explosives were used in the explosion.

Police declared high alert in Peshawar and arrested several suspected persons after the incident. SP city said police had beefed up security around the city to avert any untoward incident in the wake of imminent threats of terror attacks and entry of suicide bombers.

Meanwhile, there were reports that around 12 suicide bombers had made their entry into the city for major terrorist attacks. The reports said that terrorists might target government installations, police posts, police stations and other important installations.

Fear and panic gripped the provincial metropolis when the people in Peshawar heard about the entry of suicide bombers in city. People restricted their movements while police patrolling was increased.

In the wake of entry of suicide bombers, SP City Khalid Hamdani said security forces were on red alert across the city and police had been directed to keep a strict check on both the entry and exit points of the city.

Heavy contingent of police had been deployed on the entry points from Bara and other areas to stop any untoward happening.

Peshawar police on Thursday arrested three suspected afghan nationals and registered FIRs against them. The arrests were made on Abdara Road near University Town Peshawar. Police said their documents were incomplete and they were shifted to Central Jail Peshawar.

The arrested people were identified as Feroze, Assadullah and Ibrahim.